Noble House China Holdings Ltd Net Income jumped on 157% in 2015 and Revenue jumped on 117%
15/03/2016 • About Noble House China Holdings Ltd (
$8246) • By InTwits
Noble House China Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Noble House China Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 191.0%.
- CAPEX is quite volatile: 4.0 in 2015, 1.4 in 2014, 6.5 in 2013, 8.0 in 2012, 6.1 in 2011
- The company has highly profitable business model: ROIC is at 35.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Noble House China Holdings Ltd ($8246) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 131.2 | 124.7 | 99.5 | 74.8 | 162.5 | 117.2% |
| SG&A | | | | 1.0 | 0.8 | -16.0% |
| EBITDA | 22.4 | 11.9 | -23.2 | -28.0 | 33.1 | -218.4% |
| Net Income | 4.0 | 4.8 | -26.6 | -32.2 | 18.4 | -157.0% |
Balance Sheet
|
|---|
| Cash | 34.3 | 22.9 | 20.7 | 37.2 | 125.0 | 235.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.1 | 8.0 | 6.5 | 1.4 | 4.0 | 194.6% |
Ratios
|
|---|
| Revenue growth | 6.0% | -5.0% | -20.2% | -24.8% | 117.2% | |
| EBITDA growth | 33.4% | -47.0% | -294.8% | 20.6% | -218.4% | |
| EBITDA Margin | 17.1% | 9.5% | -23.3% | -37.4% | 20.4% | 57.7% |
| Net Income Margin | 3.1% | 3.8% | -26.8% | -43.1% | 11.3% | 54.4% |
| SG&A, % of revenue | | | | 1.3% | 0.5% | -0.8% |
| CAPEX, % of revenue | 4.6% | 6.4% | 6.6% | 1.8% | 2.4% | 0.6% |
| ROIC | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% | 149.5% |
| ROE | 15.8% | 10.2% | -74.5% | -129.5% | 26.0% | 155.5% |
| Net Debt/EBITDA | -1.5x | -1.9x | | | -3.8x | -3.8x |
Revenue and profitability
The company's Revenue surged on 117% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.1 pp from -5.0% to 6.1% in 2015.
SG&A as a % of Revenue decreased slightly on 0.81 pp from 1.3% to 0.51% in 2015.
Net Income marign surged on 54.4 pp from -43.1% to 11.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.4% in 2015. The company's CAPEX/Revenue decreased on 4.0 pp from 6.4% in 2012 to 2.4% in 2015. For the last three years the average CAPEX/Revenue was 3.6%.
Return on investment
The company operates at high and attractive ROIC (35.63%) and ROE (25.99%). ROIC surged on 149 pp from -114% to 35.6% in 2015. ROE jumped on 156 pp from -130% to 26.0% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 236% in 2015.
Appendix 1: Peers in Retail
Below you can find Noble House China Holdings Ltd benchmarking vs. other companies in Retail industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | | 47.2% | 12.6% | 43.3% | -17.1% |
| NewOcean Energy Holdings Ltd ($342) | 19.3% | 23.1% | 15.9% | 36.0% | |
| |
|---|
| Median (111 companies) | 23.9% | 10.5% | 6.1% | 3.1% | -1.0% |
|---|
| Noble House China Holdings Ltd ($8246) | | -5.0% | -20.2% | -24.8% | 117.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (101 companies) | 40.0% | 37.7% | 38.0% | 35.6% | 45.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (110 companies) | 13.1% | 10.3% | 7.3% | 8.8% | 8.1% |
|---|
| Noble House China Holdings Ltd ($8246) | 17.1% | 9.5% | -23.3% | -37.4% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | 17.7% |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (111 companies) | 3.9% | 4.0% | 3.6% | 3.6% | 2.7% |
|---|
| Noble House China Holdings Ltd ($8246) | 4.6% | 6.4% | 6.6% | 1.8% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (111 companies) | 16.6% | 12.0% | 8.3% | 8.4% | 6.2% |
|---|
| Noble House China Holdings Ltd ($8246) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (87 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
